Markets & Finance

Wachovia Ups Biogen Idec to 'Outperform'

Wachovia upgraded Biogen Idec (BIIB) to outperform from market perform. Yesterday the company and Elan (ELN) said they expect to submit an application to FDA for approval of Antegren by mid-2004.

Wachovia analyst Martin Auster says the mid-2004 filing would set up an end of 2004 to early 2005 launch, 1 year ahead of his expectation. He says the filing is based on 1 year of relapse data, rather than more common 2-year period, which implies superior treatment experience.

Auster sees $130 million in Antegren sales in 2005, reaching $941 million in 2008. He says Biogen Idec will be one of the few large-cap biotechs with accelerating EPS trends over the next few years.

He ups his $41 to $46 valuation range to $60 to $64. He sees EPS of $1.24 in 2004.